Analysis

Multistate Tax alert archive

State tax legislative, judicial, and administrative developments

​The Multistate Tax alert archive includes external tax alerts issued by Deloitte Tax LLP's Multistate Tax practice during the last three years. These external alerts highlight selected developments involving state tax legislative, judicial, and administrative matters. The alerts provide a brief summary of specific multistate developments relevant to taxpayers, tax professionals, and other interested persons.

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Most recent Multistate Tax alert

Proposed Sec. 385 regulations update: Is a MTC model rule on the horizon?

In the “Report on New IRS Proposed Sec. 385 Regulations,” July 22, 2016 (available here), Fort stated that “in most states . . . it should be possible to apply the substantive provisions of the [Proposed Sec. 385 Regulations] without adopting state-level regulations.” (Report at p. 2, emphasis added). In the MTC Uniformity Committee meeting, Fort explained that, in certain circumstances, the Proposed Sec. 385 Regulations could potentially apply for state income tax purposes where they are not applicable for federal income tax purposes. Fort highlighted that, for state income tax purposes only, the substantive requirements of the Proposed 385 Regulations could apply to transactions among members of the same federal consolidated group who are:

  • Filing separately for state income tax purposes
  • Filing on a combined basis for state income tax purposes but not included in same combined group

Fort also indicated that states should expect challenges to a state-only application of the Proposed Sec. 385 Regulations unless a separate state regulation is adopted. Fort suggested that the MTC may need to consider developing a model state rule to clarify the application of the Proposed Sec. 385 Regulations for state income tax purposes.

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2015 Multistate Tax alerts

Find out what you missed in 2015. Explore our archive.

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2014 Multistate Tax alerts

Find out what you missed in 2014. Explore our archive.

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2013 Multistate Tax alerts

Key updates in 2013. Explore our archive.

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